Leading online FX and CFD brokerage operator, IG Group, has just made a statement regarding the Brexit-related volatility on its operations, Finance Magnates reports.
The firm noted that it operated and managed its exposure very effectively, as per regulatory filings made with the London Stock Exchange (LSE) where it is listed under ticker IGG.
A number of major FX brokerages that are publicly-traded, including GAIN Capital, FXCM, and CMC Markets, have just made similar statements after historic market volatility transpired in currency and global stock markets this Friday and as the end to a frantic trading session is almost over.
IG statement on Brexit
The IG statement noted: “The Company managed its operations and exposure very effectively through the night and into today. IG’s emphasis has been on assisting clients through this period of uncertainty, through measures both ahead of and during the event.
The financial markets may remain unpredictable for some time to come and IG will continue to monitor and manage exposures and client positions very carefully. Although very early in the financial year, the Company is performing in line with expectations.”
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IG mentioned in the filing today that on Tuesday, July 10th, 2016, it will report its financial results for the year ended 31 May 2016, on Tuesday 19 July 2016.
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Geopolitical effects on markets
IG explained in the filing that it made the announcement amid the extremely unusual nature of the event and significant movements in financial markets. The company issued the update on the immediate impact of the trading surrounding the EU referendum event which it managed through the night and into the Friday session.
Several media reports confirm that many of the UK’s younger voters in key cities had voted to stay, while outside of major cities such as London and in surrounding rural and suburban areas there were older demographics who voted to leave.
This geopolitical event has had a profound impact on global markets already, as noted in Finance Magnates extensive coverage in related articles this Friday.
We’ll continue to track the aftermath of Brexit – which is still being digested and as more brokers report further, and as the theme will likely remain relevant to the global financial services industry for some time, among other industries that will be affected.